investit software inc. 1 developer pro

Investit Software Inc. www.investitsoftware.com

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Developer Pro USA 45 LOT SUBDIVISION DEVELOPMENT EXAMPLE

INTRODUCTION This example uses the Quick Proforma Land Subdivisions template. This practice example consists of three Sections;

1. The input information for the project 2. Explanation of Developer special features for carrying out development analysis 3. The instructions for entering the project data

PROJECT INFORMATION Property Name: Hawthorn Farms Description: 45 Lot Subdivision Land Area: 1,087,750 Sq Ft Frontage: 0 Ft Number of Lots: 45 Land & Dev. Costs Folder

Land Costs sub folder

Description Amount Hard Cost Soft Cost Land $2,850,000 �� Legal Fees $15,000 �� Appraisal Fees $12,000 ��

Construction sub folder

Description Amount Hard Cost Soft Cost Building Demolition $25,000 �� Site Clearing & Grading $130,000 �� Storm & Sanitary Sewer $4,000 per Lot x Total No. of Lots ��

Water Works $1,500 per Lot x Total No. of Lots �� Underground Hydro & Tel. $3,000 per Lot x Total No. of Lots ��

Siltation Control $35,000 ��

Boulevard & Landscaping $6,000 per Lot x Total No. of Lots ��

Roads & Sidewalks $12,000 per Lot x Total No. of Lots ��

Street Lighting $1,500 per Lot x Total No. of Lots ��

Tree Planting $230,000 ��

Professional Fees sub folder

Description Amount Hard Cost Soft Cost Geo-Technical Services $35,000 ��

Engineering 12.00% of Construction and Site Prep. Costs �� Mortgage Brokerage Fees $37,000 ��


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City Fees sub folder

Description Amount Hard Cost Soft Cost Application Fees $25,000 ��

Connection Fees $3,000 per Lot x Total No. of Lots �� Inspection Fees $13,000 ��

Impact Fees $20,000 per Lot x Total No. of Lots ��

Property Taxes $60,000 ��

Miscellaneous sub folder Miscellaneous costs

Description Amount Hard Cost Soft Cost Miscellaneous Costs $25,000 ��

Contingency Allowance 10.00% of Land, Dev. & Financing Costs

Construction Financing Folder

Equity: $2,800,000 Interest Rate: 8.50% Development Time

Pre-Construction Period: 7 Months Construction Time: 6 Months Sales Period: 13 Months

Lot Sales Folder

Description Entry QTY Prime Lots $265,000 per Lot 10 Regular Lots $195,000 per Lot 35

Selling Expenses Folder

Real Estate Commission 5.00% of Sale Price

Selling Expenses Marketing & Advertising: $25,000 Legal Fees: 2.00% of Sale Price


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INSTRUCTIONS FOR ENTERING THE PROJECT INTO DEVELOPER PRO Getting started The first step is to open the Developer Pro Template “Quick Proforma Land Subdivisions” as follows:

1. Open Developer Pro. 2. Select the Investit Templates folder

3. Select and open the Investit template “Quick Proforma Land Subdivisions”

Entering the project data and information

If you haven’t done so already, you should take the time to fill out

Note the sentence in red


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PROJECT INFO Folder 1. Enter the Property Name: Hawthorn Farms 2. Enter Description: 45 Lot Subdivision 3. Enter Land Area: 1,087,750 Sq. Ft 4. Enter Number of Lots: 45

The Project Info screen should look like this;

LAND & DEV. COSTS folder

Land Costs sub folder

Description Amount Hard Cost Soft Cost Land $2,850,000 �� Legal Fees $15,000 �� Appraisal Fees $12,000 ��

The Land Costs sub folder should appear like this;


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Instructions for entering the Land Costs

1. Select row with Description ‘Land’ 2. Enter the Amount: $2,850,000 3. Select row with Description ‘Legal Fees’ 4. Enter the Amount: $15,000 5. Select row with Description ‘Appraisal Fees’ 6. Enter the Amount: $12,000

The Land Costs sub folder should now look like this;

Click on the Construction tab to go to the Construction sub folder


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Construction sub folder

Description Amount Hard Cost Soft Cost

Building Demolition $25,000 �� Site Clearing & Grading $130,000 �� Storm & Sanitary Sewer $4,000 per Lot x Total No. of Lots ��

Water Works $1,500 per Lot x Total No. of Lots �� Underground Hydro & Tel. $3,000 per Lot x Total No. of Lots ��

Siltation Control $35,000 ��

Boulevard & Landscaping $6,000 per Lot x Total No. of Lots ��

Roads & Sidewalks $12,000 per Lot x Total No. of Lots ��

Street Lighting $1,500 per Lot x Total No. of Lots ��

Tree Planting $230,000 ��

The Construction sub folder should appear like this;

Steps for entering the Construction Costs

1. Select row with Description ‘Building & Demolition’ 2. Enter the Amount: $25,000


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3. Select row with Description ‘Site Clearing & Grading’ 4. Enter the Amount: $130,000 5. Select row with Description ‘Storm & Sanitary Sewer’ 6. Select the Entry Choice ‘$ per Lot x Total No. of Lots’ 7. Enter the Amount: $4,000

8. Select row with Description ‘Water Works’ 9. Select the Entry Choice ‘$ per Lot x Total No. of Lots’ 10. Enter the Amount: $1,500

11. Select row with Description ‘Underground Hydro & Tel.’ 12. Select the Entry Choice ‘$ per Lot x Total No. of Lots’ 13. Enter the Amount: $3,000

14. Select row with Description ‘Siltation Control’ 15. Enter the Amount: $35,000

16. Select row with Description ‘Boulevard & Landscaping’ 17. Select the Entry Choice ‘$ per Lot x Total No. of Lots’ 18. Enter the Amount: $6,000

19. Select row with Description ‘Roads & Sidewalks’ 20. Select the Entry Choice ‘$ per Lot x Total No. of Lots’ 21. Enter the Amount: $12,000

22. Select row with Description ‘Street Lighting’ 23. Select the Entry Choice ‘$ per Lot x Total No. of Lots’ 24. Enter the Amount: $15,000

25. Select row with Description ‘Tree Planting’ 26. Enter the Amount: $230,000

The Construction folder should now look like this;


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Click on the Professional Fees tab to go to the Professional Fees sub folder Professional Fees sub folder


Geo-Technical Services $35,000 ��

Engineering 12.00% of Construction and Site Prep. Costs �� Mortgage Brokerage Fees $37,000 ��

The Professional Fees sub folder should appear like this;


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Steps for entering the Professional Fees

1. Select row with Description ‘Geo-Technical Services’ 2. Enter the Amount: $35,000 3. Select row with Description ‘Engineering’ 4. Enter the Amount: 12.00% 5. Select row with Description ‘Mortgage Brokerage Fees’ 6. Enter the Amount: $37,000

7. Select row with Description ‘Legal Fees’

8. Click on the button


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The Professional Fees sub folder should look like this;

Click on the City Fees tab to go to the City Fees sub folder City Fees sub folder

Description Amount Hard Cost Soft Cost Application Fees $25,000 ��

Connection Fees $3,000 per Lot x Total No. of Lots �� Inspection Fees $13,000 ��

Impact Fees $20,000 per Lot x Total No. of Lots ��

Property Taxes $60,000 ��


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The City Fees sub folder should appear like this;

Steps for entering the City Fees

1. Select row with Description ‘Application Fees’ 2. Enter the Amount: $25,000 3. Select row with Description ‘Connection Fees’ 4. Select the Entry Choice: “$ per Lot x Total No. of Lots” 5. Enter the Amount: $3,000 6. Select row with Description ‘Inspection Fees’ 7. Enter the Amount: $13,000 8. Select row with Description ‘Impact Fees’ 9. Select the Entry Choice: “$ per Lot x Total No. of Lots” 10. Enter the Amount: $20,000

11. Select row with Description ‘Property Taxes’ 12. Enter the Amount: $60,000


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The City Fees sub folder should look like this;

Click on the Miscellaneous tab to go the Miscellaneous sub folder Miscellaneous sub folder


Miscellaneous Costs $25,000 ��

The Miscellaneous sub folder should appear like this;

Steps for entering the Miscellaneous


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1. Select row with Description ‘Miscellaneous costs’ 2. Enter the Amount: $25,000

The Miscellaneous sub folder should now look like this;

Click on the Contingency tab to go to the Contingency sub folder Contingency Allowance 10.00% of Land, Dev. & Financing Costs The Contingency sub folder should appear like this;

Steps for entering the Contingency

1. Enter the Amount: 10.00% The Contingency folder should now appear like this;


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Click on the Construction Financing tab to go to the Construction Financing Folder CONSTRUCTION FINANCING FOLDER

Equity: $2,800,000 Interest Rate: 8.50% Development Time

Pre-Construction Period: 7 Months Construction Time: 6 Months Sales Period: 13 Months


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The Construction Financing Folder should appear like this;

Steps for entering the Construction Financing

1. Enter the Equity Amount: $2,800,000 2. Enter the Construction Loan. Interest Rate: 8.50%

3. Enter the Pre-Construction Period: 7 Months

4. Enter the Construction Time: 6 Months

5. Enter the Sales Period: 13 Months


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The Construction Financing Folder should look like this;

Click on the Lot Sales tab to go to the Lot Sales folder LOT SALES Folder

Description Entry QTY Prime Lots $265,000 per Lot 10 Regular Lots $195,000 per Lot 35


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The Lot Sales folder should appear like this;

Steps for entering the Lot Sales

1. Select row 1 2. Enter the Description: “Prime Lots” 3. Enter the Qty: 10 4. Enter the Amount: $265,000 5. Select row 2 6. Enter the Description: “Regular Lots” 7. Enter the Qty: 35 8. Enter the Amount: $195,000

The Unit Sales folder should now look like this;

Click on the Selling Expenses tab to go to the Selling Expenses folder


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Selling Expenses Folder Real Estate Commission 5.00% of Sale Price The Real Estate Commission should appear like this;

Entering the Real Estate Commission

1. Select “Fixed % of Sale Price” from the scroll down menu 2. Enter the Amount: 5.00%

The Real Estate Commission should now look like this;

Selling Expenses Marketing & Advertising: $25,000 Legal Fees: 2.00% of Sale Price The Selling Expenses should appear like this;

Entering the Selling Expenses

1. Select row 1 ‘Marketing & Advertising’ 2. Enter Expense: $25,000 3. Select row 2: ‘Legal Fees’ 4. Entry Choice: “% of Sale Price” 5. Enter Expense: 2.00%


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The Selling Expenses should now appear like this;

SAVE YOUR PROJECT

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